With the economy looking a bit uncertain, and cash flow potentially looking a bit tight, how many businesses are going to be taking steps to reduce their marketing spend?
Like many of our clients, we're hearing news of an upcoming government campaign calling on businesses to divert marketing spend into cutting prices for customers.
And, like many others, we can see how extraordinarily damaging this could be for businesses.
Overwhelmingly, marketing is a growth lever and makes companies far more money than it costs.
Here are 4 key reasons why you really shouldn’t cut your marketing budget:
- Good marketing pays for itself. Whether it’s through lead generation, online conversions or increased brand awareness and share of search, your marketing team is almost certainly bringing back far more than your outlay.
- You’ll put yourself on the back foot and you’ll need to play catch up. While you’re cutting your marketing, your competitors will see the opportunity to moving into the gap. When you’re ready to spend again, you’ll find it twice as hard to make up the lost ground, and you’ll be behind rather than out in front.
- Your brand reputation will suffer. A good reputation in the marketplace takes years to build. But it can be lost in the space in minutes. By not having an expert leading your marketing efforts or steering the ship for your brand, you could make a wrong turn, or just fade into the background.
- You could see a drop in sales. It may not be straight away, as the residual effect of your marketing will last a short time, but it won’t be long before you start to feel the impact of having no marketing and a reduced reputation on your marketing share and sales figures.
Marketing doesn't *stop* when you get rid of your marketing support. It just becomes less efficient. You still need to reach your audience and sell your product/service. But instead of having an expert handle it for you, it becomes the job of your sales people, your directors, your office staff. People who don't necessarily have the tools or experience to do it efficiently or effectively, taking them away from the things they are good at, and ultimately costing you more.
But if you’re wanting to make sure you’re getting the most out of your marketing, here's what you should do instead:
- Make sure you have an expert in the room - someone who can understand data, set strategy, and pivot quickly. When the numbers are showing that the strategy isn’t bringing in the leads, you want someone who can adapt the plan and try something new.
- Funnel energy into the activities that directly affect the bottom line. That means if email marketing brings revenue, make sure that your marketing team has the time and resource to focus on optimising emails. If you have tried and tested lead generators, now may not be the best time to test new things instead.
- Streamline your digital journeys to make it easier for people to get to the point of sale with you, quicker. Do everything you can to help people make the decision to choose your product or service, quicker. Ensure your webpages are optimised for the best possible conversion rate, make forms simpler and shorter wherever you can. Make it possible for people to purchase without having to speak to a sales person. Remove as much friction from the process as you can.
If you need advice on building a high-performing marketing team, or if you could use some interim marketing support, please do reach out - we'd love to chat to you!